How global stocks react after Fed rates decision?

European stocks rose on December 12, 2016 while Asian markets declined ahead of a Federal Reserve meeting that is expected to raise U.S.interest rates and oil prices surged after producers agreed to cut output.AP | December 12, 2016, 16:33 IST

It has not budged since then, as the climb back to firm growth has been much slower than expected.

BEIJING - European stocks rose while Asian markets declined ahead of a Federal Reserve meeting that is expected to raise U.S. interest rates and oil prices surged after producers agreed to cut output. South Korean stocks were little changed after the country's president was impeached.

KEEPING SCORE: In early trading, France's CAC 40 gained 0.3 percent to 4,778.80 and Britain's FTSE 100 rose 0.2 percent to 6,968.10. Germany's DAX shed 0.1 percent to 11,194.45. On Friday, the DAX rose 0.2 percent to finish the week up 6.6 percent. The CAC 40 rose 0.6 percent and the FTSE 100 added 0.3 percent. On Wall Street, the future for the Dow Jones industrial average was up 0.1 percent and that for the Standard & Poor's index was unchanged.

FED WATCH: Investors expect Fed governors, meeting Thursday, to raise rates for only the second time in a decade. The Fed has kept rates close to zero since the 2008 global crisis but its leaders have indicated the U.S. economy has strengthened enough to start gradually returning to normal policy. The election of Donald Trump, who has promised tax cuts and higher spending, has raised questions about whether the Fed will delay future moves to see how that plays out. Investors are expected to look at Fed comments on the economic outlook for clues to its next move on rates.

ANALYST'S TAKE: "A quarter-point rate hike looks almost certain," Jim O'Sullivan of High Frequency Economics said in a report. "The tone of the statement will probably be a more upbeat than last time, but we don't expect projections to change significantly."

OIL MARKET: The club of major oil exporters persuaded 11 non-members to cut oil production, a move aimed at draining a worldwide oil glut and boosting low prices that have squeezed government finances in Russia and Saudi Arabia. The Organization of Petroleum Exporting Countries said non-members agreed to cut 558,000 barrels per day for six months starting Jan. 1. Those non-member cuts come on top of an OPEC decision Nov. 30 to reduce member output by 1.2 million barrels a day. Saudi oil minister Khalid Al-Falih said Saturday's deal would stabilize the market through next year and encourage industry investment. Al-Falih said the deal "is meant to accelerate the natural process of rebalancing" the oil market.

SOUTH KOREA: The opposition-controlled legislature passed an impeachment motion Friday against President Park Geun-hye following accusations by prosecutors that she colluded with a longtime friend to extort money and favors from South Korea's biggest companies and gave that confidante influence over government decisions. Prime Minster Hwang Kyo-ahn is to lead a caretaker government while a court weighs Park's fate. Park has apologized for putting trust in her friend, Choi Soon-sil, but has denied any legal wrongdoing.

WALL STREET: U.S. stocks rose for a sixth day Friday. Big gains went to companies that have been mostly left out of the post-election rally, including health care companies and makers of household goods. Coca-Cola and Pfizer both gained 2.5 percent. Investors have mostly avoided consumer goods makers and health companies in recent weeks. Instead they have bought banks and machinery companies, which could benefit more from economic growth.

ENERGY: Benchmark U.S. crude surged $2.42 to $53.92 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 66 cents on Friday to $51.50. Brent crude, used to price international oils, jumped $2.27 to $56.61 in London. The contract added 44 cents the previous session to $54.33.

CURRENCY: The dollar rose to 115.49 yen from Friday's 115.29 yen. The euro was unchanged at $1.0562.

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